Sanlam Sky Houghton: R1.15M Recovery & 25% Energy Reduction
How Augos delivered a 25% energy reduction with a 1.5-day payback, R10,000 monthly PFC savings, and recovered R1.15M in overbilling for Sanlam Sky Houghton through a multi-pronged energy management strategy.
The Challenge: Excessive Base-Load and Billing Discrepancies
Following the successful implementation of Energy Intelligence meters at other Sanlam/Santam properties, analysis of the Sanlam Sky Houghton building revealed a significant opportunity for base-load optimization—the building ran at approximately 200-220 kW at night (off-peak), compared to 350 kW during the day.
Additionally, Augos identified a low Power Factor on site, which under the local municipal tariff structure would severely penalize the building via demand and reactive energy charges. Simultaneously, Augos was investigating discrepancies between the measured consumption and utility bills that suggested systematic overbilling.
The Augos Solution: Multi-Pronged Energy Management Strategy
An Augos team performed an after-hours site audit, revealing that the primary cause of the excessive base-load was lighting with very few control switches. The simple, low-cost intervention involved installing basic light switches and instructing security personnel to manually switch off non-critical equipment during off-peak hours.
Given the low Power Factor and punitive municipal tariff, Augos installed a comprehensive Power Factor Correction solution to improve electrical system efficiency. The precise, independently verified data from the Augos Energy Intelligence meter was used to identify significant, systematic overbilling by the City Council, with check metering installed to irrefutably validate the data before presenting evidence to the municipality.
The Result: Transformative Financial and Operational Wins
The team successfully reduced the night-time load to an average of 80 kW, delivering a 25% reduction in total energy use with an astonishing 1.5-day payback period for the hardware installation. The PFC system reduced Maximum Demand and Reactive Energy Charges by R9,000–R10,000 per month, with a rapid project payback of 11.5 months.
The single greatest financial win was achieved via Billing Correction—after presenting irrefutable evidence to the City Council, Sanlam Sky received a verifiable credit of R1,150,000 applied directly to their account. This integrated approach showcased the unparalleled value of accurate energy intelligence, with next steps including analysis of the current electricity tariff structure for a potential switch to Time-of-Use (TOU) tariff.
Key Takeaways
Simple, low-cost interventions like basic light switches can deliver 25% energy reduction with 1.5-day payback
Power Factor Correction delivers R10,000 monthly savings with 11.5-month payback under municipal tariffs
Independently verified data from Augos meters enabled R1.15M billing error recovery from the City Council
Multi-pronged strategy combining base-load optimization, PFC, and billing verification maximizes value